What’s the difference between invoice factoring and traditional loans?

Why has invoice factoring been gaining popularity in recent years? Business people are choosing this alternative funding method over bank loans or traditional loans from other financial institutions for a variety of reasons.

As banks become more restrictive and the marketplace changes, businesses are appreciating the flexibility of invoice have left many companies with fewer options for financing. Factoring companies, including their accessibility for companies with no or poor credit history. Factoring professionals focus on your customers’ creditworthiness, not your credit background.

Invoice factoring is a simple process that gets you paid upfront for your accounts receivable, without waiting weeks or months for checks from customers with long payment terms. You submit your invoices and the factoring company sends you a large percentage of the value of the invoices right away – often the same day.

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